True or false: financial management

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   All finance comes at some cost.

2. Statement is true

   Yes

   Statement

   Capital structure is the mix of funds a firm raises.

3. Statement is true

   Yes

   Statement

   A large takeover requires careful financial planning.

4. Statement is true

   No

   Statement

   The choice of capital structure has no effect on risk.

Instructions

Decide whether each statement about finance is true or false.

Explanation